Senator Kallman introduces legislation to fund statewide transit with rideshare taxes

“This legislation would direct revenue from rideshare services back to the communities impacted by that traffic while also providing much-needed funding to develop Rhode Island’s transit future..."

A Rhode Island General Assembly press release:

A bill introduced by Senator Meghan Kallman (Democrat, District 15, Pawtucket, Providence) would use the proceeds of rideshare taxes to invest in street infrastructure and statewide transit development while also funding current public transportation services.

“Great public transit systems reduce congestion and pollution, help cities and states compete to attract top talent, and enable housing production around convenient transit hubs,” said Senator Kallman. “This legislation would direct revenue from rideshare services back to the communities impacted by that traffic while also providing much-needed funding to develop Rhode Island’s transit future – one with the frequent buses, light rail, and dense and walkable neighborhoods that our State needs to be green and stay competitive with our neighbors.”

The legislation (2025-S 0092) would add a 75-cent fee to each fare collected by rideshare companies like Uber and Lyft in Rhode Island. Half of the fee would be used to fund street infrastructure improvement in the municipality where the fare originated, while the other half would fund the implementation of the Rhode Island Transit Master Plan.

This plan would start the process of building a comprehensive statewide public transportation system by 2040, reducing climate emissions and advancing Rhode Island’s progress toward its Act on Climate mandates.

The bill would also direct the sales tax revenue already being collected from rideshares to a restricted receipt account to fund the Rhode Island Public Transit Authority.

“Whether it’s reducing our greenhouse gas emissions, making Rhode Island more attractive to employers, or increasing workforce participation, we cannot progress without a healthy RIPTA,” said Senator Kallman. “RIPTA needs steady and diverse funding streams that will allow it to operate smoothly year-to-year and expand its services to meet the transit needs of Rhode Islanders.”

The governor’s proposed budget leaves RIPTA with a $32.6 million budget gap, which would lead to service cuts and layoffs.

“The Save RIPTA coalition is grateful to Senator Kallman for her dedication to fighting for a public transportation system that is reliable, accessible, and convenient for all Rhode Islanders,” said Liza Burkin, an organizer of the effort to Save RIPTA. “We look forward to working with the General Assembly to find sustainable, long-term funding solutions to ensure RIPTA can drive our economy forward, reduce carbon emissions, and get people where they need to go.”